Ignorance is the basic foundation of graft and corruption. The BIR-corrupt brigade is maximizing its full potential and profitability. Fishes find strength, courage and competence in numbers. They had conquered their predators/enemies by grouping together in order to make them bigger than their enemies. You too can become bigger than the fear that lingered in your minds and hearts. Join 'JuanTALKS' now and share your knowledge and experiences to other Filipinos.

Thursday, 26 December 2013

Starting today, December 26, 2013 and every week thereafter, if ETM-sched will permit, he would discuss in full details YOUR 48 WEAKNESSES that governed and proper forward the daily BIR-corruption activities. Although you are so aware and already warned of such corrupt acts, you still think and feel that you owe a BIR-revenue officer a material thing (worst, debt of honour). ETM adopted these laws from the book of Robert Greene that is THE 48 LAWS OF POWER. You would be amazed that each and every law that Mr. Greene developed are being craftily used to propel the indecent ideals of those who are working at the Bureau of Internal Revenue (BIR).

Some of you think and feel that a tree is worth saving than the forest. This weakness of many of you is being capitalised by most of the BIR-revenue officers (RO). It is not by mere accident that the RO knew this weakness but they were trained either one-on-one or by batch basis in order for them to know, learn and use this weakness at their personal advantage.

The first weakness that most of you are advertising even if you are so unconscious that you are advertising it is the ACT OF SINCERITY WEAKNESS.

You know for a fact that most of the RO cannot and must not be trusted for their purpose is to bring confusion to your mind and cash into their pockets.

Similar to Al Capone and Count Victor's scenario, how many times that you went to these RO to ask/request for an assistance but instead of helping you immediately they would pretend that what you are asking/requesting for is outside their level and expertise. Thus they would immediately reject and suggest you to go the their superior that is the Revenue District Officer (RDO). Confused, frustrated and don't know what to do, you would usually approach these rejecting-RO again and ask/request for his assistance to the new problem that they created that is to see and talk to their RDO. In this situation, these RO had already won your trust and confidence. They are now solving for you the problem that they created and because you want them to solve this problem that they created, you see them as sincere and helpful to your cause. Thus, they have shown, in your mind and heart, their ACT OF SINCERITY. But take note, they haven't solve your original concern/need. They would just be taking you to their RDO who has, as they alleged, the power to attend to your concern/need. Indebted to the kind act that is called 'sincerity' is damaging.

In times of BIR investigation/audit, these RO would present to you a deficiency tax assessment that cannot be understood and would bring too many sleepless nights to you and your family. They would say to you that they cannot do anything about it but they would try to talk to their superior who may have the "ways(?)" to lower the amount thereof. Knowing that no one, even your lawyers and CPAs, has the competence and intellect to answer the allegations stated in the said assessment, you feel that the ACT OF SINCERITY is there. Although, these RO is not helping you at all, you think that their SINCERITY is enough to help your solve the problem that in the first place, was created by the same RO.

Because of this ACT OF SINCERITY, you think and feel that you are in the right company and had met the most honest RO, thus, you should, as being persuaded by your bookkeeper, lawyer and CPA, give a BRIBE as a show of gratitude to their indispensable ACT OF KINDNESS.

ETM believes that nobody, specially you, should fall into this damaging trap that is being waged backward and forward by many RO.

If you have a very huge deficiency tax assessment and nobody is advising you how to lower it down LEGALLY, please feel free to contact Divine Grace Fresco who has the intellectual capacity to reduce it without giving BRIBE or charging you a fee that you cannot accommodate. Her telephone numbers are 439 3918 and 921 6107 or mobile numbers are 0998 9793922 or 0922 8010922

If you want ETM to handle your tax problems (even if you are an alleged tax evader), please feel free to scan and send your concerns at kataxpayer@gmail.com..

The implementation of RR 18-2013 that changes the legal proceedings in preparing and issuing deficiency tax assessments and protesting them shall commence on January 6, 2014.

Doble kara as it is being called now means that RR 18-2013 solved an existing problem but created another monster.

The good news about it is that it deleted the preparation and use of the so-called Notice for Informal Conference wherein the unsuspecting taxpayers are required to explain the contents of the said Notice for Informal Conference although the requirement is to have the framer of it to explain the same to the said taxpayer, require the taxpayer to check and verify the facts and figures stated therein even if the legal proceedings is for its framer to show his working papers and evidences that lead to the preparation of the said Notice for Informal Conference. In short, the Notice for Informal Conference was being used not only to get vital information from the stressed-out taxpayer but also to create burden and chaos in the mind and heart of the poor taxpayer that most of the times lead to negotiated arrangements. These negotiated arrangements are so detrimental to the Republic of the Philippines for the correct amount of taxes had been deprived to it but most alarming is that the taxpayer who believes that giving handsome bride to these stupid revenue officers would stop once and for all may later on realise that it is just the beginning of the yearly harassment/oppression and bribing of revenue officers belong to the group called 'Revenue District Office'

The bad news about it is that Kim, being known to be a very bright lawyer by choice, became so careless when she framed that if a taxpayer who received a preliminary assessment notice (PAN) failed to file a valid protest against it, he shall be considered in default. Being in default, the formal letter of demand and final assessment notice (FLD/FAN) shall be prepared to him. However, if he was able to file a valid protest within the reglamentary period, the FLD/FAN shall still be prepared and served to him.

What laws did Kim and his boss, Hon Purisima violate?

In 1985, the due process says that when a taxpayer filed a valid protest against PAN, the Chief Assessment Division (CAD) shall check if the protest concerns a question of law or a question of facts. If it is a question of law, the CAD would refer it to the Chief Legal Division (CLD) for appropriate action else to the Revenue District Officer (RDO) for the ascertainment of facts. This almost 28 year due process requirement was totally deleted without public hearing. An act that is contrary to the provisions of the 1987 Administrative Code and New Civil Code.

Secondly, to ignore a protest, whether valid or not valid, is an act that is also contrary to the provisions of Republic Act No. 9485 (Anti-Red Tape Act). It is stated therein that all government and public officials and employees shall inform and advise, in writing, the public of their actions on any petition, request, etc that the public filed to his office.

Thirdly, the 1987 Administrative Code says that if a petition is filed to a government agency, its officials and employee shall render a decision or resolution based on facts and laws. No where therein that allows Kim and Cesar to do either a misfeasance or nonfeasance. They must always render a resolution within 10 days from the receipt of the protest.

Fourthly, as ETM recognises the power of Kim to solely interpret the laws of taxation (NIRC), her power is limited to the laws that she must interpret. Meaning, if there is a law to be interpreted, then interpret the said law. If the law is too simple and cannot be mistakenly understood, then, there is nothing to be interpreted. Furthermore, if there is no law to be interpreted, thus, don't be interpret nothing. AS AN ETM SUGGESTION, KIM MUST NOT INTERPRET IF THERE IS NOTHING TO INTERPRET.

Finally, Kim as a lawyer and CPA should abide by her Oath of Office that is she must uphold the said Constitution. The said provision of RR 18-2013 which she pursued is unconstitutional because it violated the provision of the 1987 Philippine Constitution, 'THE RULE OF TAXATION MUST BE UNIFORM AND EQUITABLE." It is not only not "uniform" or not in conformity with the legal system/due process requirements of the Philippines but most importantly, it is not "equitable" and beneficial to the taxpaying public.

Kim and Cesar must revisit it and change it to be in harmony with the existing body of laws.

To all taxpayers, let us unite. Collectively, let us file a class suit against Kim and Cesar at the proper forum. Together let us challenge it at the Regional Trial Court by way of filing a Declaratory Relief.

If you are at the side of the taxpaying public, join and announce that Emelino T Maestro and his group would be happy to represent you and your friends against tyrants and terrorists.

Call 0998 797 3922 or 0922 801 0922Place your name, mobile and email at the comment portion hereof so that we can call and advise you once we have the required number to challenge to monsters of our democratic society.

Alas! Kim Henares, the one of its kind Specie, played once again a Santa Clause because with the stroke of her pen, she declared that effective December 16, 2013 up to January 5, 2014, all revenue officials and employees are prohibited to conduct or continue their field audit and other investigative works…. Oooops, not so fast… the audit and investigation of your operations shall still be pursued if you are under the following circumstances or cases, viz;1. your tax case is prescribing2. you are a government agency or GOCC3. you are in the 'tiange' operations4. you are retiring from business5. you are requesting for the issuance of CAR6. other cases that Kim may authoriseHail the Mother of a New Specie…This is a privileged communication and shall be considered as ETM-belief. Thanks….

When I was a freshly graduate from Pamantasan ng Lungsod ng Maynila 28 years ago, I learned early enough that to be employed immediately and getting my desired salary would only just be a dream because I was in the bottom of the list of candidates who would be hired due to the fact that my fellow fresh graduates (1) who came from prestigious schools like Ateneo, La Salle or UP, (2) who either has a latin honor or came from the top of his class, and (3) who already passed the licensure exams are overflowing on the priority list. Ending, I accepted a 37.50 pesos/day job (when the minimum wage is already 64 pesos a day) as an accounting clerk cum messenger in a government owned and controlled corporation.

This scenario has never changed since then. Many of the graduating students may find themselves as a less desirable candidate for a job. Many also from those who graduated last year still have to find a job.

The schools had taught you well the ability to think BUT IT DID NOT TEACH YOU HOW TO THINK AND ACT LEGALLY. We are in a society where the superiority of laws of State is overwhelming and encompassing. Your acts must always within its parameters else you would either be fined, imprisoned or deported. Law makes us civilized residents of the Philippines. And, without it, we are called ‘criminals’ or ‘fugitives’.

Saying so, it is better to advertise to your potential employers that (1) YOU KNOW THE LAW and (2) YOU CAN USE THE LAW EITHER TO SOLVE HIS PROBLEMS OR PREVENT POSSIBLE PROBLEMS TO OCCUR.

Most of the employers’ problems today arise from their ignorance of the Bureau of Internal Revenue’s rules and regulations. If you would only take a moment to study the cause and effect of their failure to comply with them. You would find yourself in the priority list of the desirables.

What is a CAREER AND BUSINESS OPPORTUNITY PROGRAM? It is systematic approach in increasing the corporate/business value of a would-be employee by way of aligning his knowledge and knowhow in solving the chronic and operational problems of his potential employer.

Every employer would like to know that the would-be employee had already and seriously immersed himself to the laws governing BIR’s tax mapping, inventory-taking, surveillance, tax evasion strategies, audit and investigation and deficiency tax assessments. When he sees that the latter had already undergone special seminar/course/training in the said field, the chance of being employed and getting the desired salary rate is within grasp.

The employer may see this as a substantial cash saving for him because he would no longer send the chosen employee to a tax training/seminar to understand the rules governing his business operations and the ratio of preparing a wrong and irrelevant report (in which a fine is imposable) that would be submitted to the BIR would be sufficiently addressed.

For all students who are graduating this year or graduated last year, MCM Trust Fund has a special offer to all of you. It would substantially reduce your investment fee if you would place your name, mobile and email address at the comment portion of this post. So that if there would be enough numbers to be taught about the rules governing the business of taxation, you would be properly informed.

Justifying that their existence is necessary and too important, many Certified Public Accountants and some BIR-revenue officers are promoting consciously the use of generally accepted accounting principles (GAAP) and Philippine Financial Reporting Standards (PFRS).

Are you familiar with statement “IGNORANCE OF THE LAW EXCUSES NO ONE FROM COMPLIANCE THEREWITH.”? It is your basic obligation not only to the State (Republic of the Philippines) but also most relevant to yourself. Failure to educate yourself with the laws of the State is a crime that is called ‘negligence’. In other language, you may be criminally prosecuted and also handsomely penalized for your neglect to perform a legal duty. And, part of your obligation to yourself is NOT TO BE IGNORANT OF THE LAWS OF THE PHILIPPINES.

GAAP/PFRS as they are emphasizing is just a “principle” and ‘standard’. They may a stepping stone in creating your own policies and procedures. To follow or not to use them is only an option. In short, you are neither required to learn nor follow/use them.

The truth is that GAAP and PFRS are irrelevant and immaterial as far as taxation is concerned. They are the reason for the miseries, troubles and problems of every taxpayer in the Philippines. For further enlightenment, please read Sections 232 and 257, National Internal Revenue Code.

In 2007, the BIR Commissioner has already clarified that GAAP and PFRS are for the observance of big and large corporations (see RR 8-2007). Thus, individuals, small corporations and partnerships are not obliged, mandated and bound to use GAAP and PFRS.

Scalawags and corrupt revenue officers are rejoicing whenever GAAP/PFRS-basis financial statements are the attachments to the income tax return because not only they are contrary to the laws of the State, their disparity thereto creates opportunity and illegal income to an enterprising revenue officer.

Furthermore, the Philippine Supreme Court says that it is not and will not be bound to use the work of a CPA for they are using only, in making a decision or resolution, the laws of the State. So what really is the use of the CPA in the lives of the Filipino taxpayers.... Ala eh..

To liberate yourself from tax troubles, yearly bribing, mental and physical stress/disease brought by the works of many CPAs conniving with scalawag revenue officers, it is time to change your business policy and strategy... You can start learning and invoking the use of the laws of the State in your accounting and financial operations.

YOU'RE INVITED….

Topic…TOP SECRETS IN UNDERSTANDING A BIR ELECTRONIC LETTER OF AUTHORITY

Sunday, 22 December 2013

Banks and other financial intermediaries that are registered with the Bangko Sentral ng Pilipinas are required to issue the following (RR 18-2012), viz;

NON-VAT SALES INVOICES - for purposes of Percentage Tax pursuant to Section 116 of the NIRC, as amended, it is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the Percentage Tax liability of the seller.

NON-VAT OFFICIAL RECEIPTS - for purposes of Percentage Tax pursuant to TITLE V of the NIRC, as amended, it is a proof of sale of service and/or leasing of properties which shall be the basis of the Percentage Tax liability of the seller. It is a written admission or acknowledgment of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers.

However, there are reports that the BIR Regional Directors and Revenue District Officers are encouraging these banks not to issue NONVAT official receipts for the interest payments made by its client-borrowers. Likewise, they also instructed not to issue NONVAT sales invoices for the sales of real (land) and personal (car) properties that they acquired through forfeiture. Accordingly, the Philippine Government is losing revenue for the alleged manipulation and misrepresentation being knowingly perpetuated by these banks and other financial intermediaries and their cohorts who are RDs and RDOs…

COA, Ombudsman and CSC must look into this mess and conduct a preliminary investigation for the Philippine Government is losing, by way of disobeying RR 18-2012, millions of revenue.

How to help the Philippine Government? All taxpayers paying any fee or interest on borrowed amounts from banks and the likes should ask for NonVAT official receipts which can be used to substantiate a deductible expense.

Free 7 day tax consultation on topics related to BIR electronic letter of authority, deficiency tax assessment and tax mapping operations to those who will register and pay on or before January 10, 2014, 5pm

According to Section 203, National Internal Revenue Code, the BIR has 3 years from the date the return was filed to make an assessment of a tax. If the BIR through its revenue officers (RO) failed to do the same, the taxpayer is off the hook in receiving a deficiency tax assessment and thus, he already avoided to be criminally prosecuted and harassed.

Conniving with Regional Directors and Revenue District Officers having unusual moral values, ROs are/werer issuing left and right deficiency tax assessments. These assessments contained figures and allegations that are not even supported by facts and laws or are/were based on their presumptions and caprices. Disturbing so much, they are showing that the returns filed by taxpayers who are under investigation and their tax case are prescribing are false and fraudulent. Or, in other words, the assessments contained the dangerous 50% surcharge.

Unacceptable is also the action of his superior specially the Regional Director and the Revenue District Office who are cuddling and promoting and tolerating this kind of injudicious acts and behaviours. They too should be removed from office.

Because this approach became so effective in the case of PacMan and in the area of GenSan and Zamboanga City, it is therefore being deliberately used nationwide.

How to fight back? Taxpayers should unite and expose these malicious intention because this new and injudicious modus operandi would only benefit the ROs. The RO, as he is saying in issuing the hastily made assessment notices, is just protecting the interest of the Philippine Government. No, he is not doing this to protect the Government but to cement his place inside the BIR for RO who failed to finish his investigation within 180 days or before the return filed would prescribed shall be removed from the service or transferred to the undesirable Districts of the BIR.

YOU'RE INVITED….

Topic…TOP SECRETS IN UNDERSTANDING A BIR ELECTRONIC LETTER OF AUTHORITY

Those who will register and pay early shall be given a free 7-day consultation for the above topics and 20% discount for the preparation of a reply or protest against any BIR notices such as tax mapping, surveillance, inventory taking, deficiency tax assessment notices.

Early payment should be first made before the said discount and free consultation shall be given.

Last Sunday's headline was BIR failed and still fails to collect 300B worth of internal revenue taxes (per COA-report).

Kim who is the current BIR Commissioner reasoned out that this amount came from previous administrations (GMA, ERAP, RAMOS, etc)..Be they might be, her justification is out of context and totally comical.

As a responsible revenue officer she has a job to inventory-take what are to be collected immediately, what are the potential collectibles and what are protested deficiency tax assessments.

ETM believes that she is only escaping the legal duties that the law vested in her shoulders. Please be reminded that 3 and a half years had passed by but she and her fellow revenue officers deliberately failed and ignored and are still failing and ignoring to collect the said amount at the expense of the Filipino people. This may be called 'misfeasance and nonfeasance' in a grand scale. And, revenue officers may face criminal and administrative penalties of acting incorrectly and irregularly and not acting at all on the tasks at hand. COA must file these charges at the Office of the Ombudsman for criminal case and Civil Service Commission for administrative case. Moreover, any taxpayer may also file the same charges against Kim and other revenue officers at the same forums.

Taxpayers should unite to fight all incompetencies and nonfeasance.

A course in TAX ACCOUNTING FOR RETAILER WHOLESALES, DEALER AND DISTRIBUTOR shall be held at Davao (Jan 20-21) and Gensan (Jan 23-24).

Saturday, 14 December 2013

The management already told you, ‘Pack up. The company no longer needs your services. Get your final check now at our Cashier’s Office.”

Yes, ETM knows that you are too young to retire because you have a family to feed, a housing loan to repay and have kids studying in private schools. And, you are too old to get a new job that offers the same compensation package that you are receiving now.

Scenario planning plays a vital role in preventing a Yolanda-type disaster to happen. This is sometimes called ‘midlife crisis.’ According to NSO’s statistics, such crisis is a happy-home wrecker, a reason to take one’s life and a justification to be dependent on illegal drugs and other vices

What is a POST-EMPLOYMENT PROGRAM? A action plan. A fallback. A cushion. If the syndrome ‘TOO YOUNG TO RETIRE AND TOO OLD TO BE EMPLOYED’ happens, you would have a free flowing source of income that would sustain your daily needs, repay your loans and can still help you send your kids to schools.

Who are qualified to take it? Those who have a degree in Law, Arts, Commerce and Business Administration, preferably those who have no PRC-license, and the only source of livelihood anchored to his one and only employer is strongly encouraged to take it.

Current scenario! Alarming as it is. The market place today is flooded with lawyers and CPAs. Their numbers already exceeded the demand which is one of the reasons why you would be bumped off of your comfortable office seat by a newly passed one who may provided the management the same results as you are giving it but at the fraction of the compensation that you are receiving.

Because of the Bureau of Internal Revenue’s tightened rules, the knowhow of lawyers and CPAs as far as taxation is concerned is becoming irrelevant and immaterial. And, this area/field of expertise that is taxation is your key not only to increase your value in your company but also will give you an opportunity to harness your potential as an entrepreneur.

Before you can be trusted by others either as a competent Tax Accountant or a reliable Tax Consultant, you have to provide them with relevant evidence that would elicit a favorable action. It is good to remember that this evidence must not be too tasking and time-consuming to get.

A TAX AGENT LICENSE, for example, which is being granted by the Bureau of Internal Revenue (BIR) is best to be secured while you are yet to become a CPA or a lawyer or you are NOT a CPA or a lawyer for its requirements are too easy to comply with.

Unlike in the CPA field where you need to pass its Board Exams and be employed as an apprentice for the period of three (3) years before you would be allowed to practice it, in Tax Agent Practice, an eighteen (18) credit hours of special training, seminars or short term courses in National Internal Revenue Code (taxation) on top of the degree either in Arts, Commerce, Business Administration or Law is only what you need. Without it, the BIR would neither accept nor evaluate your Application for Tax Agent (BIR Form No. 1916).

What is a TAX AGENT? He is an individual who offers his important tax services for a fee to others. His jobs includes the preparation and certification of returns, statements and other papers, representation of a client before the BIR and drafting of reports, protests and the likes. His professional fee may range from 2,000-25,000 pesos per consultation or 150,000- more than a million pesos per tax case. If you wish to have an electronic copy of the BIR-rule governing the practice of Tax Agents and its application form, feel free to submit a request via KATAXPAYER FACEBOOK.

There is no age limit required in securing this prestigious Tax Agent License.

The two (2) initial courses that you must undergo are, viz;

A. Tax Accounting

COURSE DESCRIPTION

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and health deterioration. Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND/OR BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start at the value added tax accounting, then would be followed by withholding tax accounting and would end up with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

Accounting

Unit

Value added tax

3

Withholding tax

3

Income tax

3

B. Tax Consulting

INTRODUCTION

The United States of America’s Armed Forces is literally employing the tactics known as ‘preemptive strike’. It is based on the principle that an enemy is planning a devastating attack against the lives, liberty and livelihoods of its citizens.

In taxation, particularly in the Philippines, eLA, LN and SDT have a very disastrous and damaging consequences on the lives, liberty and livelihood of its recipient-taxpayers (usually their effects are similar to what Typhoon Yolanda did in the Visayas).

To control and contain their aftermath, potential recipients and practicing consultants must know how to prepare/issue a preemptive strike. Thus, the first approach is to clearly and completely understand them.

COURSE DESCRIPTION

A. KNOWING eLA

What does a BIR eLetter of Authority (eLA) mean?

What is so frightening about it?

How to overcome fear that it brings?

What story it tells?

What rights, privileges, obligations and benefitsdoes it create?

How to use it against BIR officials/to youradvantage?

How to properly manage/handle it?

What rules govern it?

B. COMPREHENDING LN

What is a Letter Notice (LN)?

What beauty and benefits does it bring?

How to use the rules that created it to protectyou from high deficiency VAT/income tax assessment, Oplan Kandado, and tax evasion charge?

What important actions are needed to avoid receiving it again?

C. UNDERSTANDING SDT

What is a Subpoena Duces Tecum (SDT)?

Who is/are allowed to approve/issue it?

Who in particular is/are required to be SDTed?

Should it be feared? Ignored?

What are the best ways to overcome it?

What are its scope and coverage?

What are your rights and privileges under the SDTproceedings?

How to use it to your advantages?

How to properly handle it?

EXPECTED OUTCOMES

1. To be able to understand the legal and regulatory requirements that cover/govern the eLA/LN/SDT

2. To be able to examine and evaluate their disadvantages and advantages

3. To be able to harness and use their powers, disadvantages and advantages to your benefits

4. To be able to protect/promote the rights and privileges of a taxpayer

5. To be able to extinguish without the unnecessary hindrance and unwanted expenses the obligations that they created

6. To be able to read and comprehend their content and context

7. To be able to identify and determine the crimes that are being deliberately employed by BIR officials

8. To be able to develop a tax audit planning, technique or strategy that would deprive BIR officials to harass and oppress you

Consulting

Unit

eLetter of Authority

3

Letter Notice

3

Subpoena Duces Tecum

3

CERTIFICATE OF SPECIAL TRAINING LEVEL 101 (Understanding Tax Accounting as well as eLetter of Authority, Letter Notice and Subpoena Duces Tecum) with 18 credit hours shall be issued to those who successfully completed the 2 courses.

For the training/investment/enrollment fee and the place, time and date of the above courses, feel free to call Manila Office

Tuesday, 3 December 2013

New BIR Rules on Issuing and Protesting Assessmentsby Emelino T Maestro, Father of Tax Accounting, Tax Guru"Small and simple crime that is habitually performed nationwide is the biggest crime of all."

Here are the gists of RR 18-20131. Notice for Informal Conference (NIC) was removed. Thus, you shall no longer receive such Notice from the Revenue District Officer2. After an eLetter of Authority is served, expect that a Preliminary Assessment Notice (PAN) shall be prepared and served.3. The PAN shall state the fact and the laws from which the deficiency tax assessment is derived. Otherwise, the such assessment is to be considered 'Void'4. A protest should be made within 15 days from receipt of the PAN otherwise a FLD/FAN shall be prepared and issued.5. The protest may either be a request for reconsideration or reinvestigation which you must clearly stated in the body of the protest.6. Although a protest against PAN is lodged on time, still FLD/FAN shall be prepared and issued which will give you a thirty day period to protest it (again?)..{ETM recommends that instead of filing a protest against PAN, a request for extension to file such protest must be prepared and submitted in order to buy time}7. Failure to dispute all allegations in the said assessment, the amounts shown therein shall become final and collectible.8. Failure to supply the facts and the laws from which the protest is derived, the amounts shown in such assessment shall become final and collectible9. Failure to dispute some issues in the said assessment, the amounts pertaining to undisputed issues shall become final and collectible.10. Failure to submit all relevant records in support of the protest shall make the amount due thereon to become final and collectible.11. Commissioner shall not accept a request for reinvestigation but only request for reconsideration

On December 23, 2013 at La Salle Campus, RCBC Plaza, Makati City, a open forum on how to deal with this new rule shall be held... ALL ETM STUDENTS, CLIENTS AND FRIENDS ARE INVITED TO ATTEND. Registration and payment of P1,120.00 investment fee shall be on or before December 17, 2013. The room shall accommodate 64 pax. Bring your own snack, pencil and paper. Be informed, be punctual. Starts at 2pm and ends at 5pm

Thursday, 14 November 2013

According to the BIR Commissioner, if you would purchase a 2.4 million-peso vehicle which is not to be used for the delivery of goods but for the use of a certain personnel, even if you would charge portion of its wear and tear, knowingly called 'depreciation' to your taxable income, it shall not be allowed. This means that you shall have an income tax disadvantage of 720,000 pesos for the duration of the useful life of the said vehicle. Or, in other language, your income tax payments is more than 720,000 pesos than the usual. Furthermore, if you paid 12% VAT for the said vehicle which is more or less 288,000 pesos, this input VAT shall not be allowed as a deduction from your output tax which means that you would shell out an additional amount similar to the VAT attributable to the purchase of the said vehicle. Finally, if you would allow your employee to use the said vehicle for his/her personal use, you are deemed to pay fringe benefit tax.

If you want to know how to get around with these stringent rules, please buy any book of ETM and he would email to you the ways to get around with the same.. Only the buying that is done within November 16 - 30, 2013 (8a - 6p) shall be entitled to receive the answer/solution.

Tuesday, 12 November 2013

To all victims of Super Typhoon YolandaOur prayers are for your safety and immediate recoveryby Emelino T Maestro, et. al.

To help and assist taxpayers and businesspeople who were greatly affected by Yolanda, ETM and his group would help them comply with the BIR requirements of reporting the lost of their inventories, properties, records and books so that if they are under BIR investigation or would be investigated by BIR for the 2013 and prior years, they would have a proper and complete papers to show the devastating financial effects of Yolanda to their lives and livelihoods.

Our President, Divine Grace Fresco and our Action Man, Jose Filomar Bas, would gladly help and assist you in documenting your losses. Please be reminded that the BIR-rule requires those who are affected in anyway to file the said documents within 30 days from the date the disaster. Thus, you have until December 11, 2013 to comply with the mandate of the law of the State.

Saturday, 5 October 2013

Last 2012, Honorable Kim Henares scrapped the exemption of condominium-association due from VAT and income tax. Thanks to her, condo-unit owners/tenants have to financially suffer because the Condominium Corporations shall pass on to them the said taxes.

This 2013, a Court declared her order ‘INVALID’. However, it is still being challenged so its implementation may be somehow delayed.

My suggestion to you is to secure the same Court’s ruling so that the excess money attributable to the payment of VAT and income tax by condo unit owners/tenants not only may be returned to them but also the ‘paying it directly to the BIR’ may be stopped/avoided.

Otherwise, you just give yourselves a time to attend my seminar so that you may learn and quickly apply the true and correct ways in doing the above suggestions.**IMPORTANT ANNOUNCEMENTThe Courts and BIR's known language.... TAX ACCOUNTINGAttend the Workshop/Training/Seminar#taxaccountingcampaign, #emelinotmaestro, Sep 8, 2013

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..

Friday, 4 October 2013

Another intriguing acts of the BIR this 2013 is to require you to pay the deficiency income tax due to non withholding of a tax even if you already paid the subject withholding tax upon the receipt of its assessment notice.This BIR-action scrapped and reversed its 20-year old rule. For your information, the National Internal Revenue Code allows the late payment of taxes. Provided, that you shall pay its corresponding interest, surcharge and penalty. In other words, if you failed to withhold a tax, you can still pay it after a BIR examiner had discovered it. Meaning, the NIRC permits that upon payment of withholding tax, the concerned expenses shall be allowed again as a deduction from your gross sales, receipts or income.Please join and be a member of RR 12-2013 GROUP so that together, we can file a special court case against this infringement of rights and privileges.IMPORTANT EVENT....

Managerial Accounting and Financial Accounting, according to many taxpayers who became the victims of BIR scalawags, are the sources of graft and corruption because they are incomprehensible and inadmissible as far as the BIR is concerned.

To stop the BIR's harassment, oppression and corruption, the law of the State is encouraging, if not commanding, the taxpaying public to use the TAX ACCOUNTING..

IMPORTANT NEWS...

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..

RR 6-2013 says that any disposition of shares of stock of a closed/family corporations shall either be based on the adjusted value of land and its improvements or fair value of the shares of stocks whichever is higher.

The term "disposition' means the sale, exchange, barter, donation and inheritance of shares of stocks of a family/closed corporation.

The term "land and its improvements' refers to the land and anything found thereon as they are shown in the latest Balance Sheet of the family/closed corporation.

Again, the 100-year old rule had been knowingly twisted and then changed without a valid consultation with the taxpaying public.

Comical as it is, the disposition of shares of stocks of corporations registered at the Philippine Stock Exchange is exempted or treated differently. Meaning, the sale, exchange, barter, donation and inheritance of the said shares of stocks shall be based on their fair market value or book value.

The term 'fair market value' means the amount of the said shares of stocks that is shown on the bulletin board of the Philippine Stock Exchange.

The term 'book value' means the amount of the outstanding capital stock of the concerned corporations plus their accumulated retained earnings divided by the outstanding number of shares.

The difference between the two types of disposition of shares of stocks is only the place where the shares of stocks is being sold... For family/closed corporations, their shares of stocks are being disposed of outside the jurisdiction of the Philippine Stock Exchange but for those public corporations' shares of stocks, they are being disposed of using the facilities of the Philippine Stock Exchange.

The BIR is giving a preferential treatment or in other words, exempting the public corporations from paying more taxes while it is imposing more taxes to family/closed corporations.

For your information, the holders and owners of prime lots and improvements thereon are not family/closed corporations but most of them are public corporations.

Treating the disposition of shares of stock differently is amending, revoking, repealing the existing laws of the State.

ETM suggests that this patently erroneous RR 6-2013 shall be brought to the attention of the Regional Trial Court so that it could be scrapped.

Wednesday, 2 October 2013

RMC 57-2013, UNUSED INPUT TAX, DISALLOWED EXPENSEEMELINO T MAESTRO DISAGREES; 10-2-2013ATTEND HIS TAX CONSULTING COURSE TO BE UPDATEDWhoever penned the BIR Ruling stated in Revenue Memorandum Circular No. 57-2013 is an amateur who pretends to be a professional.Here its dispositive case, viz;"It is noted, based on the above-cited provisions, that unutilized creditable input taxes attributable to zero-rated sales can only be recovered through the application for refund or tax credit. Nowhere in the Tax Code can we find a specific provision expressly providing for another mode of recovering unapplied input taxes, particularly your proposition that unapplied input taxes may be treated outright as deductible expense for income tax purposes. Thus, your proposition, that accumulated and unapplied input value-added tax (VAT) arising from Cekas’ purchase of goods and services after the expiration of the two (2) year prescriptive period may be expensed outright, is hereby denied for lack of legal basis.”

Under Revenue Regulations No. 16-2005, unused input taxes can be claimed as a deduction from gross income, viz;

"SEC. 4.114-2, Withholding of VAT on Government Money Payments and Payments to Non-Residents. – (a) The government or any of its political subdivisions, instrumentalities or agencies, including government-owned or controlled corporations (GOCCs) shall, before making payment on account of each purchase of goods and/or of services taxed at 10% VAT pursuant to Secs. 106 and 108 of the Tax Code, deduct and withhold a final VAT due at the rate of five percent (5%) of the gross payment thereof. The five percent (5%) final VAT withholding rate shall represent the net VAT payable of the seller. The remaining five percent (5%) effectively accounts for the standard input VAT for sales of goods or services to government or any of its political subdivisions, instrumentalities or agencies including GOCCs, in lieu of the actual input VAT directly attributable or ratably apportioned to such sales. Should actual input VAT exceed five percent (5%) of gross payments, the excess may form part of the sellers’ expense or cost. On the other hand, if actual input VAT is less than 5% of gross payment, the difference must be closed to expense or cost."

"RMO 4-2007. The five percent (5%) final VAT withholding rate shall represent the VAT payable of the seller. The remaining seven percent (7%) effectively accounts for the standard input VAT for sales of goods or services to government or any of its political subdivisions, instrumentalities or agencies including GOCCs in lieu of the actual input VAT directly attributable or ratably apportioned to such sales."

Input tax cannot exist without purchases/expenses. Therefore, the original source of input tax is an expense and to claim an input tax as an input tax relies on the shoulder of the taxpayer and not to the whims and caprice of any BIR officials (See VAT law in relation to Section 34, NIRC)

Finally, a creditable input tax partakes as a receivable to the Philippine Government, through the Bureau of Internal Revenue. If the same, at the option of the taxpayer, can no longer be claimed as a tax refund or credit, the taxpayer may consider it as a bad debt which is similar to uncollectible receivables from customers, clients and employees...

Erroneous and preposterous....Without legal and factual legs to stand on ....

Managerial Accounting and Financial Accounting, according to many taxpayers who became the victims of BIR scalawags, are the sources of graft and corruption because they are incomprehensible and inadmissible as far as the BIR is concerned.

To stop the BIR's harassment, oppression and corruption, the law of the State is encouraging, if not commanding, the taxpaying public to use the TAX ACCOUNTING..

IMPORTANT NEWS...

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and problems to a taxpayer than TAX ACCOUNTING

Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start with value added tax accounting, then would be followed by withholding tax accounting and would end with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

WHO MUST ATTEND1, Those who are currently employed so that he/she may increase his/her value in an organization thus his/her salary/wage2, Those who are currently looking for an employer so that he/she may increase his/her marketability/chance to be hired and get his/her desired salary/wage3, Those who may have an opportunity to receive an eLA so that he/she may have an opportunity to stop/avoid existing/potential BIR’s illegal acts/advances and harassment

VENUESofitel Luxury Hotel, PICC Complex, Pasay City

INVESTMENT FEERegular rate -29,289 pesosEarly bird rate -14,289 pesos

WHERE TO GET TICKETSSMTickets' Online and SM CinemaFor your convenience, please deposit your investment fee at Bank of the Philippine Island (any branch), Saving Account No. 9579-0638-47 under the name of EMELINO T MAESTRO then scan-email the BPI-validated deposit slip to KATAXPAYER@GMAIL.COM..